It's a sad truth but tons of Americans and people worldwide are losing their property as a result of foreclosure annually. Some lenders are not diligent enough to check the ability of the person to make repayments whiles others just don't care. Of course, there are circumstances wherein there's a sudden turn of events towards a person's life which leads to their inability to pay for their mortgage.
No matter what the cause for client to lag on payments, the process from that point is set. The lender will initially file for public default notice. This will then initiate the foreclosure process and it's also at this point that the property would enter the pre-foreclosure stage. Simply put, pre-foreclosure is the homeowner's grace period to settle whatever issue they have in their home.
The homeowner is warned that they are in default and have to take actions to solve it. But at this point onwards, the lender couldn't claim the property back and sell it to recover their expenses. The duration of grace period will vary depending by the state laws. There are some state laws that have grace period which last for 6 months but some states have shorter periods than this. Right after the property has entered pre-foreclosure, there are numerous ways that homeowners can avoid facing foreclosed property and be sold by the lender. In the next lines, you are going to discover two of the most popular options you can take. If you want to learn more about it, I suggest you to keep on reading.
Number 1. Pay off the default - however, the property will be removed from pre-foreclosure in the event that the homeowner wasn't able to settle the default amount. It will be smart of you to take a personal loan in repaying the debt in case that the default amount is modest and it's cause by a temporary problem. The homeowner has to take quick actions immediately because if not, it will cause more problems in the end.
Number 2. Sell the house - this is more of a drastic move but this is no doubt the best solution you can have if you can't really make the repayments. By selling the house, you as a homeowner can get reasonable price for it. Waiting for the lender to sell the house on the other hand is not a good idea as the sale price will be lower. This is because the lender will offload the property as quick as they can.
While there are options for you to avoid foreclosure, still it will be recommended that you make your best efforts to not get to this point.